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FILE - In this Oct. 8, 2014, file photo, an American flag flies in front of the New York Stock Exchange in New York. The U.S. stock market opens at 9:30 a.m. EST on Thursday, Feb. 22, 2018. (AP Photo/Mark Lennihan, File)

Technology companies help drive US stocks broadly higher

February 22, 2018 - 10:19 am

Technology and industrials companies helped drive U.S. stocks broadly higher in morning trading Thursday. Bonds yields declined after spiking to four-year highs a day earlier amid rekindled fears of higher inflation and interest rates. The market is coming off a two-day losing streak.

THE QUOTE: "The yields easing back a little bit is probably reassuring people on a very short-term kind of basis," said Erik Wytenus, global investment specialist, J.P. Morgan Private Bank. "That big, nasty intraday reversal yesterday was probably a little bit excessive."

BONDS WATCH: Bond prices rose. The yield on the 10-year Treasury fell to 2.91 percent from a day earlier, when it climbed to 2.95 percent, the highest level since January 2014. The spike in bond yields came after the Federal Reserve's minutes from its January policy meeting showed bullish sentiment among policymakers, confirming their intention to raise interest rates this year.

Higher yields generally hurt stock prices by making bonds more attractive compared to equities. They also make it more expensive for people and companies to borrow money. Earlier this month, global stock markets, particularly those in the U.S., suffered big losses amid mounting concerns over the pace of inflation and Fed policy tightening.

INTO TECH: Technology companies accounted for a big slice of the market's gains in early trading. PayPal rose $1.44, or 1.9 percent, to $77.95.

INDUSTRIALS FAVORED: Shares in industrials companies rose. United Technologies was one of the big gainers a day after the CEO said the company is looking into the possibility of splitting up the industrial conglomerate into three separate businesses. The stock picked up $4.10, or 3.2 percent, to $133.36.